The Strong Road Ahead for the Credit Union Movement

Looking ahead, credit unions must build on our progress to serve members, communities and the nation even better. That is my commitment as I stand shoulder to shoulder with you, leading America’s Credit Unions into the future.

Underscoring Our Purpose

The credit union difference is simple: People helping people. Most credit unions are small, locally rooted and built by workers to serve one another. Many began with little more than shared trust and a shared mission. Take America First Credit Union, founded in 1939 by 59 friends at Fort Douglas, or the 180 military-affiliated credit unions that continue to serve service members and their families around the world.

Credit unions exist to serve Main Street, not Wall Street. Because we’re not-for-profit, earnings are reinvested directly in members, whether that’s through higher savings yields, lower loan rates, fewer fees and hands-on financial education. Whether it’s a high school branch helping teens open their first accounts, a branch manager guiding a veteran entrepreneur or a team stepping up after a natural disaster, our difference is visible in every community.

Demonstrating Our Value

Our tax structure enables credit unions to respond when members face hardship. As not-for-profit financial institutions, credit unions are committed to identifying their members’ and communities’ needs and investing in initiatives that will address them. One example, Maine Credit Unions’ Campaign for Ending Hunger, is a 35-year-long effort to address food insecurity in their communities. In that period, it has contributed nearly $15 million to end hunger in the state.

But amid the shutdown, the campaign launched an October-focused initiative to raise $100,000 during the month to prepare for impacts to federal government nutrition programs, such as SNAP benefits.

Throughout the United States, credit unions – large, small and in between – found ways like these to enhance their normal offerings to meet members’ current needs. America’s Credit Unions was in close communication with our members about how they offered assistance. Here are some insights from our survey:

• 90% offered deferred payments on existing loans;
• 78% launched new loan programs;
• 88% modified existing loans;
• 58% waived fees or penalties to reduce member strain; and
• 66% offered financial counseling or budget management support.

My top goal is to listen to our credit union community across the country, gather your stories and share them with Washington to showcase our purpose and value.

We know this works. The “Don’t Tax My Credit Union” campaign was one of the most successful grassroots efforts in recent financial history for a simple reason: It was fueled by the voices of credit union members and teams, not Washington insiders. It showed that Washington policymakers see how your unique role and tax status enable you to provide safe, reliable, affordable financial services to workers, and why you are vital to many employers, families and communities, including military bases and troops.

Our advocacy going forward will continue to center on three core priorities: Protect, empower and advance. That includes continuing to preserve the industry’s not-for-profit tax status, defending against fraud, ensuring a fair regulatory environment, modernizing outdated restrictions, and advocating for greater flexibility and innovation.

As we thank policymakers who heard the credit union community and stood behind us, we will continue to stand up for the millions of Americans who choose credit unions as their trusted financial partner. Together, we’ll continue to lead with purpose, protect what makes us unique, and show the country that people helping people isn’t just our history, it’s our future.